BANKING AFFAIRS

Detailed explanation-1: -The Problem Of The Rupee: Its Origin And Its Solution: (History Of Indian Currency & Banking) a book by Bhimrao Ramji Ambedkar.

Detailed explanation-2: -Dr B R Ambedkar is one of the most important alumnus of LSE, from where he was awarded his MA and PhD. His doctoral thesis on ‘The Indian Rupee’, written in 1922-23, was later published as The Problem of the Rupee: Its Origin and Its Solution (London: P S King & Son, Ltd, 1923).

Detailed explanation-3: -The Reserve Bank of India was set up on the basis of the recommendations of the Hilton Young Commission. The Reserve Bank of India Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank, which commenced operations on April 1, 1935.

Detailed explanation-4: -rupee, monetary unit of Muslim India from the 16th century and the modern monetary unit of India and Pakistan. The modern unit is divided into 100 paisa in India and Pakistan. The name derives from the Sanskrit rupya (“silver”). The rupee is also the name of the monetary unit used in Mauritius, Nepal, and Seychelles.

Detailed explanation-5: -Ambedkar’s basic argument was that the gold standard provided some sort of stability in the currency for a developing country like India and was against the idea of money supply being linked to gold. He emphasised the importance of price stability over exchange rate stability for the larger benefit of the poor people.